What Actually is Litecoin?

Litecoin is a cryptocurrency just like Bitcoin founded by Charlie Lee and currently the fourth-largest cryptocurrency in terms of market cap crawling behind Bitcoin cash, Ethereum and Bitcoin. Litecoin has a market capitalization of about $14.4 billion. Just like bitcoin Litecoin runs on a similar Blockchain but has a little market cap compared to Bitcoin’s 282.8 Billion.

Recently Litecoin hit an all-time record heights trading at approximately $320 a value which is approximately 7,200% more than its price of just $4.36 earlier this year. The percentage rise in the value of Litecoin is beyond that of Bitcoin since the beginning of 2017. Coinmarketcap.com, a site that takes the volume of weighted average of all prices recorded on its database from different exchanges in order to compute prices reported that Litecoin was valued at $255.42 by Tuesday this week.

The main difference Between Litecoin and Bitcoin

The major difference between Bitcoin and Litecoin can be easily seen from their total market supply limits, while Litecoin has a total supply limit of 84 million bitcoins’ total supply is only 21 million Bitcoins. At the moment about 54,268,358 Litecoin and 16,736,137 Bitcoin are already in circulation. On the other hand, in terms of transaction speeds Litecoin transactions takes just over two minutes to get all confirmations while Bitcoin transactions can take at least up to 5 hours to get confirmation. According to the founder of Litecoin, Bitcoin is merely a store of value meanwhile Litecoin is the real solution for fast transaction requirements.

What led to Litecoin’s Price boost from 5$ in Jan to $255 in December this year

Earlier this year Litecoin was valued for just about $4.36 but 11 months later that value has been multiplied by more than 73 times putting Litecoin to an all-time height of $320. To answer the question of what actually led to the spike in Litecoin’s price we look at different factors amount which includes the improvement of the general perception on cryptocurrencies. Generally, more people are getting involved in cryptocurrency trading than previously recorded figures. Another reason for litecoin’s crowning is the crisis of slow transaction speed affecting bitcoin causing some traders to find alternative faster solutions for which Litecoin became handy.

Some investors try to invest in numerous cryptocurrencies to avoid losing all their money in case one does not perform according to expectation. Being the fourth most popular cryptocurrency Litecoin stands at a good position to receive any extra investment from Bitcoin or Ethereum. This is evident by the statistics that revealed that about 40% of Litecoin are bought using Bitcoin as per the data from cryptocompare.

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